25 Oct Volt Information Sciences Enters into Agreement to Sell Quality Assurance Testing Unit of VMC
NEW YORK–(BUSINESS WIRE)–Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-MKT:VISI), an international provider of staffing services and managed service programs, today announced that it has entered into a definitive agreement to sell its quality assurance testing business (the “Business”), a part of its Technology Outsourcing Services and Solutions segment. The buyer, Keywords International Limited (“Keywords”), is a leading international technical services provider to the global video games industry. The Business, known in the industry as VMC, provides production development, QA testing and customer support to companies primarily in the video gaming and mobile industries. The sale will not include the call center services unit of the Company’s Technology Outsourcing Services and Solutions segment, which Volt will continue to own and operate.
Under the terms of the Stock Purchase Agreement, Volt will receive $66.4 million in cash at closing, subject to customary working capital adjustments. The sale is conditioned upon Keywords’ satisfaction of a financing contingency to fund the purchase price.
“The disposition of these non-core assets, which represent approximately 5% of Volt’s global revenue, will allow Volt to become a pure-play staffing company. I am confident that the Business will continue to prosper under Keywords’ management,” said Michael Dean, Volt’s President and Chief Executive Officer. “The anticipated cash proceeds from the sale will significantly strengthen Volt’s balance sheet and notably bolster our liquidity position. Importantly, this transaction will help streamline our operational focus within our core staffing business, where we are best positioned to create long-term shareholder value.”
Upon the closing of the sale, which is anticipated shortly, Volt’s current financing agreement with PNC Bank will require a $25 million paydown of our outstanding debt. Volt’s board of directors and management continue to review a broad range of options to drive shareholder value and advance the Company’s plan for growth. We look forward to further communication with our shareholders regarding potential opportunities in the near future.
Information concerning this transaction was filed by Volt today with the Securities and Exchange Commission and can be obtained at www.sec.gov or the ‘Investors’ section of Volt’s website at www.volt.com.
Milbank, Tweed, Hadley & McCloy LLP acted as legal advisor to Volt in connection with the transaction.